Technology
Blackbaud Announces 2023 Fourth Quarter and Full Year Results
Published
2 years agoon
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Full Year 2023 Financial Results Met or Exceeded Financial Guidance Ranges; Blackbaud Announces Refreshed Capital Allocation Strategy
CHARLESTON, S.C., Feb. 12, 2024 /PRNewswire/ — Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its fourth quarter and full year ended December 31, 2023.
“The fourth quarter concluded a year of substantial transformation for Blackbaud,” said Mike Gianoni, president, CEO and vice chairman of the board, Blackbaud. “Approximately a year and a half ago, we implemented our five-point operating plan, and it has put our company on a clear trajectory of improving performance. During the year, we delivered innovative new products and feature enhancements to our customers, made significant progress modernizing our software contract renewal terms, and delivered excellent fundraising results for our customers. Our financial results were strong, and we were able to expand and replenish our previous stock repurchase program and begin repurchasing shares. Looking ahead to 2024, we expect to be a Rule of 40 company for the full year and will remain focused on delivering significant, sustainable value for our shareholders.”
Fourth Quarter 2023 Results Compared to Fourth Quarter 2022 Results:
GAAP total revenue was $295.0 million, up 7.4%, with $287.4 million in GAAP recurring revenue, up 8.4%. GAAP recurring revenue was 97% of total revenue.Non-GAAP organic recurring revenue increased 8.4%.GAAP income from operations was $32.3 million, inclusive of security incident-related costs of $4.8 million, with GAAP operating margin of 11.0%, an increase of 1,670 basis points.Non-GAAP income from operations was $83.8 million, with non-GAAP operating margin of 28.4%, an increase of 840 basis points.GAAP net income was $5.4 million, with GAAP diluted earnings per share of $0.10, up $0.51 per share.Non-GAAP net income was $62.2 million, with non-GAAP diluted earnings per share of $1.14, up $0.46 per share.Non-GAAP adjusted EBITDA was $99.3 million, up $31.3 million, with non-GAAP adjusted EBITDA margin of 33.6%, an increase of 890 basis points.GAAP net cash used in operating activities was $(3.3) million, inclusive of security incident-related payments of $54.9 million. GAAP net cash used in operating activities decreased $17.4 million and GAAP operating cash flow margin was (1.1)%, a decrease of 620 basis points.Non-GAAP free cash flow was $(18.6) million, inclusive of security incident-related payments of $54.9 million. Non-GAAP free cash flow decreased $14.9 million and non-GAAP free cash flow margin was (6.3)%, a decrease of 500 basis points.Non-GAAP adjusted free cash flow was $36.3 million, an increase of $28.7 million, with non-GAAP adjusted free cash flow margin of 12.3%, an increase of 950 basis points.
“The fourth quarter demonstrated continued progress on our five-point operating plan, which has transformed our financial results,” said Tony Boor, executive vice president and CFO, Blackbaud. “In the fourth quarter, revenue grew 7.4% with 33.6% adjusted EBITDA margin for a Rule of 40 of 41.0%. For the full year 2023, we met our guidance range for revenue and exceeded the high end of our guidance ranges for adjusted EBITDA margin, non-GAAP EPS and adjusted free cash flow. The mid-point of our 2024 financial guidance calls for approximately 7% revenue growth and 33% adjusted EBITDA margin to achieve Rule of 40 for the full year. Adjusted free cash flow of $264 million at the midpoint of guidance represents a 22.3% adjusted free cash flow margin and a significant improvement of 300bps over 2023. With our recently announced $500 million stock repurchase authorization, we plan to offset the dilution from annual stock-based compensation, while also opportunistically pursuing additional share repurchases, accretive M&A, and debt repayment to maximize value for our stockholders.”
An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of the company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Recent Company Highlights
Blackbaud released Prospect Insights Pro for Blackbaud Raiser’s Edge NXT®, supporting advanced fundraising organizations with more AI-driven recommendations, including planned gift likelihood and detailed wealth and asset data.Blackbaud announced the newest cohort of its Social Good Startup Program, welcoming eight new startups that are bringing cutting edge technology to the social impact sector.In the TrustRadius 2023 “Best Of” Awards, Blackbaud Raiser’s Edge NXT® and Blackbaud Financial Edge NXT® were recognized for Best Value, Best Feature Set and Best Relationship.Newsweek honored Blackbaud on its Excellence 1000 2024 Index, as well as its list of America’s Most Responsible Companies for the third consecutive year, recognizing the company’s commitment to social responsibility.Blackbaud was named Corporate Governance Team of the Year in the small-mid cap category at the 2023 Corporate Governance Awards, hosted by Governance Intelligence. The awards recognize outstanding achievements in governance, risk and compliance.Blackbaud appointed Kristian Talvitie, executive vice president and CFO of PTC Inc., to its board of directors. Talvitie brings 30 years of experience with a diverse background ranging across corporate finance, FP&A, sales, marketing and communications.Blackbaud announced a reauthorized, expanded and replenished $500M stock repurchase program. about Blackbaud’s recent highlights.
Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.
Full-Year 2023 Results Compared to Full-Year 2022 Results:
GAAP total revenue was $1.1 billion, up 4.5%, with $1.1 billion in GAAP recurring revenue, up 5.9%.Non-GAAP organic recurring revenue increased 6.3%.GAAP income from operations was $44.7 million, inclusive of security incident-related costs of $53.4 million, with GAAP operating margin of 4.0%, an increase of 670 basis points.Non-GAAP income from operations was $294.1 million, with non-GAAP operating margin of 26.6%, an increase of 750 basis points.GAAP net income was $1.8 million, with GAAP diluted earnings per share of $0.03, up $0.91 per share.Non-GAAP net income was $213.6 million, with non-GAAP diluted earnings per share of $3.98, up $1.29 per share.Non-GAAP adjusted EBITDA was $356.5 million, up $93.9 million, with non-GAAP adjusted EBITDA margin of 32.2%, an increase of 740 basis points.GAAP net cash provided by operating activities was $199.6 million, inclusive of security incident-related payments of $78.0 million. GAAP net cash provided by operating activities decreased $4.3 million and GAAP operating cash flow margin was 18.1%, a decrease of 120 basis points.Non-GAAP free cash flow was $135.5 million, inclusive of security incident-related payments of $78.0 million. Non-GAAP free cash flow increased $2.7 million and non-GAAP free cash flow margin of 12.3%, a decrease of 30 basis points.Non-GAAP adjusted free cash flow was $213.5 million, an increase of $59.8 million, with non-GAAP adjusted free cash flow margin of 19.3%, an increase of 480 basis points.
Financial Outlook
Blackbaud today announced its 2024 full year financial guidance:
Non-GAAP revenue of $1.170 billion to $1.200 billionNon-GAAP adjusted EBITDA margin of 32.5% to 33.5%Non-GAAP earnings per share of $4.12 to $4.38Non-GAAP adjusted free cash flow of $254 million to $274 million
Included in its 2024 full year financial guidance are the following assumptions:
Non-GAAP annualized effective tax rate is expected to be approximately 24.5%Interest expense for the year is expected to be approximately $34 million to $38 millionFully diluted shares for the year are expected to be approximately 53.5 million to 54.5 millionCapital expenditures for the year are expected to be approximately $65 million to $75 million, including approximately $60 million to $70 million of capitalized software and content development costs
Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, capital expenditures for property and equipment, plus cash outflows, net of insurance, related to the previously disclosed Security Incident discovered in May 2020 (the “Security Incident”). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. For full year 2024, Blackbaud currently expects net cash outlays of $8 million to $13 million for ongoing legal fees related to the Security Incident. In line with the company’s policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Please refer to the section below titled “Non-GAAP Financial Measures” for more information on Blackbaud’s use of non-GAAP financial measures.
Stock Repurchase Program
As of January 19, 2024, Blackbaud had approximately $499 million remaining under its approved common stock purchase program that was authorized in January 2024.
Conference Call Details
What:
Blackbaud’s Fourth Quarter and Full Year 2023 Conference Call
When:
February 13, 2024
Time:
8:00 a.m. (Eastern Time)
Live Call:
1-877-407-3088 (US/Canada)
Webcast:
About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud’s essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud’s solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek’s list of America’s Most Responsible Companies, Quartz’s list of Best Companies for Remote Workers and Forbes’ list of America’s Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com, or follow us on X/Twitter, LinkedIn, Instagram, and Facebook.
Investor Contact
IR@blackbaud.com
Media Contact
media@blackbaud.com
Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; cybersecurity and data protection risks and related liabilities; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud’s investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Trademarks
All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.
Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud’s industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies.
The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.
Beginning in 2024, we intend to update the non-GAAP tax rate we apply when calculating non-GAAP net income and non-GAAP diluted earnings per share in future periods. Since the first quarter of 2018, for the purposes of determining non-GAAP net income, we have utilized a non-GAAP tax rate of 20.0% in our calculation of the assumed non-GAAP income tax provision. We intend to adjust this rate to 24.5% to better reflect our periodic effective tax rate calculated in accordance with GAAP and our current expectations. The increase in our non-GAAP tax rate is primarily driven by increases in income tax rates in jurisdictions we operate in. Furthermore, as profitability increases, the effect of tax impacting items, including research and development credits, lessens such that our assumed non-GAAP tax rate moves closer to the statutory rate. The non-GAAP tax rate utilized in future periods will be reviewed annually to determine whether it remains appropriate in consideration of our financial results including our periodic effective tax rate calculated in accordance with GAAP, our operating environment and related tax legislation in effect and other factors deemed necessary. All fourth quarter and full year 2023 measures of the tax impact related to non-GAAP net income and non-GAAP diluted earnings per share included in this news release are calculated under Blackbaud’s historical methodology.
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, and capital expenditures for property and equipment. In addition, and in order to provide a meaningful basis for comparison, Blackbaud now uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, and capital expenditures for property and equipment, plus cash outflows, net of insurance, related to the Security Incident. Blackbaud believes non-GAAP free cash flow and non-GAAP adjusted free cash flow provide useful measures of the company’s operating performance. Non-GAAP adjusted free cash flow is not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.
In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business’ organic revenue growth and revenue run-rate.
Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software and content development costs; stock-based compensation; employee severance; acquisition and disposition-related costs; restructuring and other real estate activities; costs, net of insurance, related to the Security Incident; and impairment of capitalized software development costs.
Blackbaud, Inc.
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except per share amounts)
December 31,
2023
December 31,
2022
Assets
Current assets:
Cash and cash equivalents
$ 31,251
$ 31,691
Restricted cash
697,006
702,240
Accounts receivable, net of allowance of $6,907 and $7,318 at December 31, 2023 and
December 31, 2022, respectively
101,862
102,809
Customer funds receivable
353
249
Prepaid expenses and other current assets
99,285
81,654
Total current assets
929,757
918,643
Property and equipment, net
98,689
107,426
Operating lease right-of-use assets
36,927
45,899
Software and content development costs, net
160,194
141,023
Goodwill
1,053,738
1,050,272
Intangible assets, net
581,937
635,136
Other assets
51,037
94,304
Total assets
$ 2,912,279
$ 2,992,703
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable
$ 25,184
$ 42,559
Accrued expenses and other current liabilities
64,322
86,002
Due to customers
695,842
700,860
Debt, current portion
19,259
18,802
Deferred revenue, current portion
392,530
382,419
Total current liabilities
1,197,137
1,230,642
Debt, net of current portion
760,405
840,241
Deferred tax liability
93,292
125,759
Deferred revenue, net of current portion
2,397
2,817
Operating lease liabilities, net of current portion
40,085
44,918
Other liabilities
10,258
4,294
Total liabilities
2,103,574
2,248,671
Commitments and contingencies
Stockholders’ equity:
Preferred stock; 20,000,000 shares authorized, none outstanding
—
—
Common stock, $0.001 par value; 180,000,000 shares authorized, 69,188,304 and
67,814,044 shares issued at December 31, 2023 and December 31, 2022, respectively;
53,625,440 and 53,068,814 shares outstanding at December 31, 2023 and December 31,
2022, respectively
69
68
Additional paid-in capital
1,203,012
1,075,264
Treasury stock, at cost; 15,562,864 and 14,745,230 shares at December 31, 2023 and
December 31, 2022, respectively
(591,557)
(537,287)
Accumulated other comprehensive (loss) income
(1,688)
8,938
Retained earnings
198,869
197,049
Total stockholders’ equity
808,705
744,032
Total liabilities and stockholders’ equity
$ 2,912,279
$ 2,992,703
Blackbaud, Inc.
Consolidated Statements of Comprehensive Loss
(Unaudited)
(dollars in thousands, except per share amounts)
Three months ended
December 31,
Years ended
December 31,
2023
2022
2023
2022
Revenue
Recurring
$ 287,381
$ 265,173
$ 1,071,520
$ 1,011,733
One-time services and other
7,630
9,584
33,912
46,372
Total revenue
295,011
274,757
1,105,432
1,058,105
Cost of revenue
Cost of recurring
127,897
125,300
470,455
463,449
Cost of one-time services and other
7,938
10,183
31,733
41,940
Total cost of revenue
135,835
135,483
502,188
505,389
Gross profit
159,176
139,274
603,244
552,716
Operating expenses
Sales, marketing and customer success
52,120
57,088
212,158
221,455
Research and development
38,602
38,177
153,304
156,913
General and administrative
35,356
58,895
189,938
199,908
Amortization
784
662
3,139
2,925
Total operating expenses
126,862
154,822
558,539
581,201
Income (loss) from operations
32,314
(15,548)
44,705
(28,485)
Interest expense
(8,473)
(9,891)
(39,922)
(35,803)
Other income, net
2,414
5
12,861
8,713
Income (loss) before provision (benefit) for income taxes
26,255
(25,434)
17,644
(55,575)
Income tax provision (benefit)
20,856
(4,175)
15,824
(10,168)
Net income (loss)
$ 5,399
$ (21,259)
$ 1,820
$ (45,407)
Earnings (loss) per share
Basic
$ 0.10
$ (0.41)
$ 0.03
$ (0.88)
Diluted
$ 0.10
$ (0.41)
$ 0.03
$ (0.88)
Common shares and equivalents outstanding
Basic weighted average shares
52,697,294
51,716,948
52,546,406
51,569,148
Diluted weighted average shares
54,439,689
51,716,948
53,721,342
51,569,148
Other comprehensive (loss) income
Foreign currency translation adjustment
$ 4,630
$ 7,906
$ 5,049
$ (16,160)
Unrealized (loss) gain on derivative instruments, net of tax
(14,459)
(1,684)
(15,675)
18,576
Total other comprehensive (loss) income
(9,829)
6,222
(10,626)
2,416
Comprehensive loss
$ (4,430)
$ (15,037)
$ (8,806)
$ (42,991)
Blackbaud, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Years ended
December 31,
(dollars in thousands)
2023
2022
Cash flows from operating activities
Net income (loss)
$ 1,820
$ (45,407)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
109,487
102,369
Provision for credit losses and sales returns
4,500
6,066
Stock-based compensation expense
127,762
110,294
Deferred taxes
(24,368)
(26,644)
Amortization of deferred financing costs and discount
1,775
2,364
Other non-cash adjustments
5,023
5,676
Changes in operating assets and liabilities, net of acquisition and disposal of businesses:
Accounts receivable
(3,237)
(7,340)
Prepaid expenses and other assets
16,851
26,235
Trade accounts payable
(18,576)
21,607
Accrued expenses and other liabilities
(30,275)
(2,386)
Deferred revenue
8,872
11,059
Net cash provided by operating activities
199,634
203,893
Cash flows from investing activities
Purchase of property and equipment
(4,685)
(12,289)
Capitalized software and content development costs
(59,443)
(58,774)
Purchase of net assets of acquired companies, net of cash and restricted cash acquired
(13)
(20,912)
Cash received in sale of business
—
6,426
Other investing activities
(250)
—
Net cash used in investing activities
(64,391)
(85,549)
Cash flows from financing activities
Proceeds from issuance of debt
293,200
211,000
Payments on debt
(374,595)
(310,740)
Stock issuance costs
—
(1,339)
Employee taxes paid for withheld shares upon equity award settlement
(35,867)
(36,376)
Change in due to customers
(6,812)
111,386
Change in customer funds receivable
(60)
380
Purchase of treasury stock
(18,831)
—
Net cash used in financing activities
(142,965)
(25,689)
Effect of exchange rate on cash, cash equivalents and restricted cash
2,048
(10,486)
Net (decrease) increase in cash, cash equivalents and restricted cash
(5,674)
82,169
Cash, cash equivalents and restricted cash, beginning of year
733,931
651,762
Cash, cash equivalents and restricted cash, end of year
$ 728,257
$ 733,931
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:
(dollars in thousands)
December 31,
2023
December 31,
2022
Cash and cash equivalents
$ 31,251
$ 31,691
Restricted cash
697,006
702,240
Total cash, cash equivalents and restricted cash in the statement of cash flows
$ 728,257
$ 733,931
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(dollars in thousands, except per share amounts)
Three months ended
December 31,
Years ended
December 31,
2023
2022
2023
2022
GAAP Revenue
$ 295,011
$ 274,757
$ 1,105,432
$ 1,058,105
GAAP gross profit
$ 159,176
$ 139,274
$ 603,244
$ 552,716
GAAP gross margin
54.0 %
50.7 %
54.6 %
52.2 %
Non-GAAP adjustments:
Add: Stock-based compensation expense
4,416
3,109
16,658
14,436
Add: Amortization of intangibles from business combinations
13,099
11,686
52,463
48,492
Add: Employee severance
—
1,787
797
2,135
Subtotal
17,515
16,582
69,918
65,063
Non-GAAP gross profit
$ 176,691
$ 155,856
$ 673,162
$ 617,779
Non-GAAP gross margin
59.9 %
56.7 %
60.9 %
58.4 %
GAAP income (loss) from operations
$ 32,314
$ (15,548)
$ 44,705
$ (28,485)
GAAP operating margin
11.0 %
(5.7) %
4.0 %
(2.7) %
Non-GAAP adjustments:
Add: Stock-based compensation expense
32,094
26,635
127,762
110,294
Add: Amortization of intangibles from business combinations
13,883
12,348
55,602
51,417
Add: Employee severance
55
4,470
5,149
5,164
Add: Acquisition and disposition-related costs(1)(2)
657
430
7,456
6,135
Add: Restructuring and other real estate activities
—
—
—
71
Add: Security Incident-related costs, net of insurance(3)
4,780
26,516
53,426
55,723
Add: Impairment of capitalized software development costs
—
—
—
2,263
Subtotal
51,469
70,399
249,395
231,067
Non-GAAP income from operations
$ 83,783
$ 54,851
$ 294,100
$ 202,582
Non-GAAP operating margin
28.4 %
20.0 %
26.6 %
19.1 %
GAAP income (loss) before provision (benefit) for income taxes
$ 26,255
$ (25,434)
$ 17,644
$ (55,575)
GAAP net income (loss)
$ 5,399
$ (21,259)
$ 1,820
$ (45,407)
Shares used in computing GAAP diluted earnings (loss) per share
54,439,689
51,716,948
53,721,342
51,569,148
GAAP diluted earnings (loss) per share
$ 0.10
$ (0.41)
$ 0.03
$ (0.88)
Non-GAAP adjustments:
Add: GAAP income tax provision (benefit)
20,856
(4,175)
15,824
(10,168)
Add: Total non-GAAP adjustments affecting income from operations
51,469
70,399
249,395
231,067
Non-GAAP income before provision for income taxes
77,724
44,965
267,039
175,492
Assumed non-GAAP income tax provision(4)
15,545
8,993
53,408
35,098
Non-GAAP net income
$ 62,179
$ 35,972
$ 213,631
$ 140,394
Shares used in computing non-GAAP diluted earnings per share
54,439,689
52,923,158
53,721,342
52,207,573
Non-GAAP diluted earnings per share
$ 1.14
$ 0.68
$ 3.98
$ 2.69
(1)
Includes a $2.0 million noncash impairment of certain intangible assets held for sale during the twelve months ended December 31, 2022.
(2)
Includes noncash impairment charges incurred during the twelve months ended December 31, 2023 related to the sublease of our Washington, DC office location the lease of which was acquired during the EVERFI acquisition.
(3)
Includes Security Incident-related costs incurred during the three and twelve months ended December 31, 2023 of $4.8 million and $53.4 million, respectively, which includes approximately $1.0 million and $31.0 million, respectively, in settlements and recorded liabilities for loss contingencies, net of insurance recoveries during the same periods of $0.0 million, and during the twelve months ended December 31, 2022 of $26.5 million and $57.6 million, respectively, which included approximately $18.0 million and $23.0 million, respectively, in recorded aggregate liabilities for loss contingencies, net of insurance recoveries during the same period that were $0.0 million and $1.9 million, respectively. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees, as well as settlements of customer claims, negotiated settlements and accruals for certain loss contingencies. Not included in this adjustment were costs associated with enhancements to our cybersecurity program. For full year 2024, we currently expect net pre-tax expense of approximately $5 million to $10 million and net cash outlays of approximately $8 million to $13 million for ongoing legal fees related to the Security Incident. Not included in these ranges are our previous settlements or current accruals for loss contingencies related to the matters discussed below. In line with our policy, legal fees are expensed as incurred. As of December 31, 2023, we have recorded approximately $1.5 million in aggregate liabilities for loss contingencies based primarily on recent negotiations with certain customers related to the Security Incident that we believe we can reasonably estimate. In connection with the settlement of the multi-state Attorneys General investigation (as previously disclosed on October 5, 2023), we paid $49.5 million during the fourth quarter of 2023. There are other Security Incident-related matters, including customer claims, customer constituent class actions and governmental investigations, for which we have not recorded a liability for a loss contingency as of December 31, 2023 because we are unable at this time to reasonably estimate the possible loss or range of loss. Each of these matters could, separately or in the aggregate, result in an adverse judgment, settlement, fine, penalty or other resolution, the amount, scope and timing of which we are currently unable to predict, but could have a material adverse impact on our results of operations, cash flows or financial condition.
(4)
Blackbaud applies a non-GAAP effective tax rate of 20.0% when calculating non-GAAP net income and non-GAAP diluted earnings per share.
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)
Three months ended
December 31,
Years ended
December 31,
2023
2022
2023
2022
GAAP revenue
$ 295,011
$ 274,757
$ 1,105,432
$ 1,058,105
GAAP revenue growth
7.4 %
4.5 %
Less: Non-GAAP revenue from divested businesses(1)
—
(10)
—
(3,535)
Non-GAAP organic revenue(2)
$ 295,011
$ 274,747
$ 1,105,432
$ 1,054,570
Non-GAAP organic revenue growth
7.4 %
4.8 %
Non-GAAP organic revenue(2)
$ 295,011
$ 274,747
$ 1,105,432
$ 1,054,570
Foreign currency impact on non-GAAP organic revenue(3)
(1,284)
—
431
—
Non-GAAP organic revenue on constant currency basis(3)
$ 293,727
$ 274,747
$ 1,105,863
$ 1,054,570
Non-GAAP organic revenue growth on constant currency basis
6.9 %
4.9 %
GAAP recurring revenue
$ 287,381
$ 265,173
$ 1,071,520
$ 1,011,733
GAAP recurring revenue growth
8.4 %
5.9 %
Less: Non-GAAP recurring revenue from divested businesses(1)
—
(1)
—
(3,439)
Non-GAAP organic recurring revenue(2)
$ 287,381
$ 265,172
$ 1,071,520
$ 1,008,294
Non-GAAP organic recurring revenue growth
8.4 %
6.3 %
Non-GAAP organic recurring revenue(2)
$ 287,381
$ 265,172
$ 1,071,520
$ 1,008,294
Foreign currency impact on non-GAAP organic recurring revenue(3)
(1,157)
—
482
—
Non-GAAP organic recurring revenue on constant currency basis(3)
$ 286,224
$ 265,172
$ 1,072,002
$ 1,008,294
Non-GAAP organic recurring revenue growth on constant
currency basis
7.9 %
6.3 %
(1)
Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods.
(2)
Non-GAAP organic revenue and non-GAAP organic recurring revenue for the prior year periods presented herein may not agree to non-GAAP organic revenue and non-GAAP organic recurring revenue presented in the respective prior period quarterly financial information solely due to the manner in which non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth are calculated.
(3)
To determine non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period’s quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)
Three months ended
December 31,
Years ended
December 31,
2023
2022
2023
2022
GAAP net income (loss)
$ 5,399
$ (21,259)
$ 1,820
$ (45,407)
Non-GAAP adjustments:
Add: Interest, net
6,208
9,053
31,101
34,057
Add: GAAP income tax provision (benefit)
20,856
(4,175)
15,824
(10,168)
Add: Depreciation
3,142
3,444
13,043
14,086
Add: Amortization of intangibles from business combinations
13,883
12,348
55,602
51,417
Add: Amortization of software and content development costs(1)
12,183
10,447
45,296
38,975
Subtotal
56,272
31,117
160,866
128,367
Non-GAAP EBITDA
$ 61,671
$ 9,858
$ 162,686
$ 82,960
Non-GAAP EBITDA margin(2)
20.9 %
14.7 %
Non-GAAP adjustments:
Add: Stock-based compensation expense
32,094
26,635
127,762
110,294
Add: Employee severance
55
4,470
5,149
5,164
Add: Acquisition and disposition-related costs(3)
657
430
7,456
6,135
Add: Restructuring and other real estate activities
—
—
—
71
Add: Security Incident-related costs, net of insurance(3)
4,780
26,516
53,426
55,723
Add: Impairment of capitalized software development costs
—
—
—
2,263
Subtotal
37,586
58,051
193,793
179,650
Non-GAAP adjusted EBITDA
$ 99,257
$ 67,909
$ 356,479
$ 262,610
Non-GAAP adjusted EBITDA margin(4)
33.6 %
32.2 %
Rule of 40(5)
41.0 %
37.0 %
Non-GAAP adjusted EBITDA
99,257
67,909
356,479
262,610
Foreign currency impact on Non-GAAP adjusted EBITDA(6)
(716)
1,326
(7)
6,305
Non-GAAP adjusted EBITDA on constant currency basis(6)
$ 98,541
$ 69,235
$ 356,472
$ 268,915
Non-GAAP adjusted EBITDA margin on constant currency basis
33.5 %
32.2 %
Rule of 40 on constant currency basis(7)
40.4 %
37.1 %
(1)
Includes amortization expense related to software and content development costs, and amortization expense from capitalized cloud computing implementation costs.
(2)
Measured by GAAP revenue divided by non-GAAP EBITDA.
(3)
See additional details in the reconciliation of GAAP to Non-GAAP operating income above.
(4)
Measured by non-GAAP organic revenue divided by non-GAAP adjusted EBITDA.
(5)
Measured by non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. See Non-GAAP organic revenue growth table above.
(6)
To determine non-GAAP adjusted EBITDA on a constant currency basis, non-GAAP adjusted EBITDA from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period’s quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.
(7)
Measured by non-GAAP organic revenue growth on constant currency basis plus non-GAAP adjusted EBITDA margin on constant currency basis.
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)
Years ended
December 31,
2023
2022
GAAP net cash provided by operating activities
$ 199,634
$ 203,893
GAAP operating cash flow margin
18.1 %
19.3 %
Non-GAAP adjustments:
Less: purchase of property and equipment
(4,685)
(12,289)
Less: capitalized software and content development costs
(59,443)
(58,774)
Non-GAAP free cash flow
$ 135,506
$ 132,830
Non-GAAP free cash flow margin
12.3 %
12.6 %
Non-GAAP adjustments:
Add: Security Incident-related cash flows, net of insurance
78,010
20,864
Non-GAAP adjusted free cash flow
$ 213,516
$ 153,694
Non-GAAP adjusted free cash flow margin
19.3 %
14.5 %
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SOURCE Blackbaud
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Technology
S&P Global Announces New Strategic Direction for Upstream Energy Business
Published
5 hours agoon
April 24, 2026By
Divests its geoscience and petroleum engineering software portfolio to global technology firm SLB in order to sharpen focus on proprietary data and insightsLaunches Titan, a new customer facing AI-powered platform for upstream data and insightsPartners with SLB to distribute S&P Global Energy data and develop new tools
NEW YORK, April 24, 2026 /PRNewswire/ — Today, S&P Global announced strategic innovations and changes to its upstream energy business, beginning with a definitive agreement to sell S&P Global Energy’s geoscience and petroleum engineering software portfolio to SLB, a global technology company driving energy innovation across more than 100 countries. This portfolio of subsurface and engineering software, widely used by U.S. onshore and unconventional operators, includes Kingdom Software, Petra, Harmony Enterprise, Analytics Explorer, SubPUMP, PowerTools, FieldDIRECT, Piper, WellTest, and The Element Platform, together with associated business services.
In addition, S&P Global Energy will launch an AI-powered upstream data platform known as Titan, designed to transform how customers discover, analyze, and act on high-quality data and insights. Built on comprehensive global coverage spanning 113 countries, Titan will serve an estimated 110,000 users across 4,000 client organizations, scaling from individual analysts to global enterprises.
Currently in beta testing with select customers, Titan is scheduled for full commercial launch later this year. The platform consolidates content and analytics into a single, high-performance workspace that accelerates critical decision-making. Titan differentiates through an AI-Powered experience that enables anticipatory discovery, surfacing relevant patterns before users need to search, and helping teams translate upstream market signals into faster commercial and strategic actions.
“This new strategic direction for our upstream business will allow us to transform a core part of our business and deliver enhanced value to our customers,” said Dave Ernsberger, President, S&P Global Energy. “Backed by an innovative new AI-powered platform, Titan, that will fundamentally change how our upstream data is connected and delivered, we are taking a significant leap forward in how we serve global energy markets as the most trusted provider of data and insights. These new investments could not come at a more important time as the world navigates a challenging energy environment, powered by the data and insights we provide.”
Along with launching Titan, divesting these software assets will allow S&P Global Energy to focus on providing world class data and insights and pursue a channel-agnostic approach toward the distribution of its content. As part of this transaction, S&P Global Energy will continue to distribute its leading proprietary data through the divested geoscience and petroleum engineering workflow tools. The parties have also entered an agreement to expand their partnership through further data distribution and collaboration on building new AI models to transform upstream business use cases.
“Unconventional markets demand speed, scale and efficiency,” said Olivier Le Peuch, Chief Executive Officer, SLB. “This software portfolio is widely used by U.S. land operators in their daily workflows. By integrating these capabilities with our industrial-scale digital platforms and AI technologies we can serve customers across the full spectrum of subsurface and planning needs.”
SLB’s upstream energy sector tools and services are designed to deliver insights and manage data to meet diverse client needs across exploration, production, logistics, and midstream infrastructure including pipelines, storage terminals, and ports. The customers include national and international energy companies, and independents, along with midstream-downstream operating companies.
The transaction is subject to the satisfaction of customary conditions, including the receipt of regulatory approvals, and is expected to close in the second half of 2026 or early 2027. Terms of the transaction were not disclosed.
J.P. Morgan Securities LLC is acting as financial advisor to S&P Global. Ropes & Gray LLP is acting as legal advisor to S&P Global. Akin Gump Strauss Hauer & Feld LLP is acting as legal advisor to SLB.
Media Contacts:
Josh Goldstein
S&P Global Energy
+1 954-254-4900
josh.goldstein@spglobal.com
Orla O’Brien
S&P Global
+1 857-407-8559
orla.obrien@spglobal.com
About S&P Global Energy
At S&P Global Energy (formerly S&P Global Commodity Insights), our comprehensive view of global energy and commodities markets enables our customers to make superior decisions and create long-term, sustainable value. Our four core capabilities are: Platts for pricing and news; CERA for research and advisory; Horizons for energy expansion and sustainability solutions; and Events for industry collaboration.
S&P Global Energy is a division of S&P Global (NYSE: SPGI). S&P Global enables businesses, governments, and individuals with trusted data, expertise, and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive economically in a rapidly changing global landscape. Learn more at www.spglobal.com/energy.
About SLB
SLB is a global technology company that has driven energy innovation for 100 years. With a global presence in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition.
Forward-Looking Statements: This press release contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events, trends, contingencies or results, appear at various places in this press release and use words like “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “potential,” “predict,” “project,” “strategy,” “target” and similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and “would.” For example, management may use forward-looking statements when addressing topics such as: the outcome of contingencies; future actions by regulators; changes in the Company’s business strategies and methods of generating revenue; the development and performance of the Company’s services and products; the expected impact of acquisitions and dispositions; the Company’s effective tax rates; the Company’s cost structure, dividend policy, cash flows or liquidity; and the anticipated separation of S&P Global Mobility (“Mobility”) into a standalone public company.
Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:
worldwide economic, financial, political, and regulatory conditions (including slower GDP growth or recession, restrictions on trade (e.g., tariffs), instability in the banking sector and inflation), and factors that contribute to uncertainty and volatility (e.g., supply chain risk), geopolitical uncertainty (including military conflict), natural and man-made disasters, civil unrest, public health crises (e.g., pandemics), and conditions that result from legislative, regulatory, trade and policy changes, including from the U.S. administration;the volatility and health of debt, equity, commodities, energy and automotive markets, including credit quality and spreads, the composition and mix of credit maturity profiles, the level of liquidity and future debt issuances, equity flows from active to passive, fluctuations in average asset prices in global equities, demand for investment products that track indices and assessments and trading volumes of certain exchange traded derivatives;the demand and market for credit ratings in and across the sectors and geographies where the Company operates;the Company’s ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, or protect against a system or network disruption that results in regulatory penalties and remedial costs or improper disclosure of confidential information or data;the outcome of litigation, government and regulatory proceedings, investigations and inquiries;concerns in the marketplace affecting the Company’s credibility or otherwise affecting market perceptions of the integrity or utility of independent credit ratings, benchmarks, indices and other services;the level of merger and acquisition activity in the United States and abroad;the level of the Company’s future cash flows and capital investments;the effect of competitive products (including those incorporating artificial intelligence (“AI”)) and pricing, including the level of success of new product developments and global expansion;the impact of customer cost-cutting pressures;a decline in the demand for our products and services by our customers and other market participants;our ability to develop new products or technologies, to integrate our products with new technologies (e.g., AI), or to compete with new products or technologies offered by new or existing competitors;the introduction of competing products (including those developed by AI) or technologies by other companies;our ability to protect our intellectual property from unauthorized use and infringement, including by others using AI technologies, and to operate our business without violating third-party intellectual property rights, including through our own use of AI in our products and services;our ability to attract, incentivize and retain key employees, especially in a competitive business environment;our ability to successfully navigate key organizational changes;the continuously evolving regulatory environment in Europe, the United States and elsewhere around the globe affecting each of our businesses and the products they offer, and our compliance therewith;the Company’s exposure to potential criminal sanctions or civil penalties for noncompliance with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which it operates, including sanctions laws relating to countries such as Iran, Russia and Venezuela, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and local laws prohibiting corrupt payments to government officials, as well as import and export restrictions;the Company’s ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;consolidation of the Company’s customers, suppliers or competitors;the ability of the Company, and its third-party service providers, to maintain adequate physical and technological infrastructure;the Company’s ability to successfully recover from a disaster or other business continuity problem, such as an earthquake, hurricane, flood, civil unrest, protests, military conflict, terrorist attack, outbreak of pandemic or contagious diseases, security breach, cyber attack, data breach, power loss, telecommunications failure or other natural or man-made event;the impact on the Company’s revenue and net income caused by fluctuations in foreign currency exchange rates;the impact of changes in applicable tax or accounting requirements on the Company;the separation of Mobility not being consummated within the anticipated time period or at all;the ability of the separation of Mobility to qualify for tax-free treatment for U.S. federal income tax purposes;any disruption to the Company’s business in connection with the proposed separation of Mobility;any loss of synergies from separating the businesses of Mobility and the Company that adversely impact the results of operations of both businesses, or the companies resulting from the separation of Mobility not realizing all of the expected benefits of the separation; andfollowing the separation of Mobility, the combined value of the common stock of the two publicly-traded companies not being equal to or greater than the value of the Company’s common stock had the separation not occurred.
The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company’s businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company’s filings with the SEC, including Item 1A, Risk Factors in our most recently filed Annual Report on Form 10-K.
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SOURCE S&P Global
STAMFORD, Conn., April 24, 2026 /PRNewswire/ — Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”), which operates the Spectrum brand, today reported financial and operating results for the three months ended March 31, 2026.
First quarter Spectrum Mobile™ lines increased by 368,000 and by 1.8 million over the last twelve months. As of March 31, 2026, Charter served 12.1 million mobile lines.During the first quarter, Spectrum Internet® customers declined by 120,000. As of March 31, 2026, Charter served 29.6 million Internet customers.As of March 31, 2026, customer relationships totaled 31.7 million and connectivity customers totaled 30.5 million.First quarter revenue of $13.6 billion declined 1.0% year-over-year, primarily driven by lower residential video revenue. Residential connectivity revenue grew 0.9% year-over-year.Net income attributable to Charter shareholders totaled $1.2 billion in the first quarter. First quarter Adjusted EBITDA1 of $5.6 billion declined 2.2% year-over-year and declined 1.8% excluding transition expenses.First quarter capital expenditures totaled $2.9 billion and included $812 million of line extensions.First quarter net cash flows from operating activities totaled $4.3 billion versus $4.2 billion in the prior year.First quarter free cash flow1 of $1.4 billion decreased from $1.6 billion in the prior year, primarily due to higher capital expenditures, partly offset by higher operating cash flow.During the first quarter, Charter purchased 4.3 million shares of Charter Class A common stock for $963 million.
“We remain confident about our ability to win in the marketplace and grow over the longer term. That confidence is founded on our advanced network, our core operating strategy of delivering great products at great prices and our focus on increasing customer satisfaction,” said Chris Winfrey, President and CEO of Charter. “As we continue to improve our products, pricing, packaging, and service, and complete our rural and network initiatives, we are poised for improving customer and free cash flow growth.”
1.
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
Key Operating Results
Approximate as of
March 31, 2026 (c)
March 31, 2025 (c)
Y/Y Change
Footprint
Estimated Passings (d)
58,661
57,167
2.6 %
Customer Relationships (e)
Residential
29,452
29,914
(1.5) %
Small Business
2,231
2,246
(0.7) %
Total Customer Relationships
31,683
32,160
(1.5) %
Residential
(157)
(50)
(107)
Small Business
(6)
(4)
(2)
Total Customer Relationships Quarterly Net Additions
(163)
(54)
(109)
Total Customer Relationship Penetration of Estimated Passings (f)
54.0 %
56.3 %
(2.3) ppts
Monthly Residential Revenue per Residential Customer (g)
$ 118.44
$ 120.07
(1.4) %
Monthly Small Business Revenue per Small Business Customer (h)
$ 162.71
$ 161.31
0.9 %
Residential Customer Relationships Penetration (i)
One Product Penetration
47.7 %
48.9 %
(1.2) ppts
Two Product Penetration
34.8 %
33.4 %
1.4 ppts
Three or More Product Penetration
17.5 %
17.7 %
(0.2) ppts
Connectivity (j)
Residential
28,446
28,758
(1.1) %
Small Business
2,074
2,080
(0.3) %
Total Connectivity Customers
30,520
30,838
(1.0) %
Residential
(117)
(5)
(112)
Small Business
(3)
(2)
(1)
Total Connectivity Quarterly Net Additions
(120)
(7)
(113)
Internet
Residential
27,524
27,979
(1.6) %
Small Business
2,036
2,045
(0.5) %
Total Internet Customers
29,560
30,024
(1.5) %
Residential
(117)
(55)
(62)
Small Business
(3)
(4)
1
Total Internet Quarterly Net Additions
(120)
(59)
(61)
Mobile Lines (k)
Residential
11,714
10,031
16.8 %
Small Business
420
334
25.7 %
Total Mobile Lines
12,134
10,365
17.1 %
Residential
344
488
(144)
Small Business
24
19
5
Total Mobile Lines Quarterly Net Additions
368
507
(139)
Video (l)
Residential
12,021
12,160
(1.1) %
Small Business
524
551
(5.0) %
Total Video Customers
12,545
12,711
(1.3) %
Residential
(51)
(167)
116
Small Business
(9)
(14)
5
Total Video Quarterly Net Additions
(60)
(181)
121
Voice
Residential
4,665
5,372
(13.2) %
Small Business
1,207
1,234
(2.2) %
Total Voice Customers
5,872
6,606
(11.1) %
Mid-Market & Large Business (m)
Mid-Market & Large Business Primary Service Units (“PSUs”)
360
344
4.5 %
Mid-Market & Large Business Quarterly Net Additions
3
4
(1)
In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
First quarter total Internet customers decreased by 120,000, compared to a decline of 59,000 during the first quarter of 2025. Spectrum Internet delivers the fastest Internet speeds1 in the nation. Spectrum is evolving its connectivity network to offer symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in several markets. Spectrum expects to complete its network evolution initiative in 2027. Spectrum Advanced WiFi provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy. In February, Spectrum launched its Invincible WiFi™ product, a tri-band advanced WiFi 7 router that integrates 5G cellular and battery backup to keep customers seamlessly and fully connected during a power outage or network disruption. In the first quarter, Spectrum launched its $1,000 savings guarantee; customers signing up to Spectrum Internet and switching two or more mobile lines from Verizon, AT&T or T-Mobile are now guaranteed $1,000 of savings in their first year, or Spectrum will cover the difference.
During the first quarter of 2026, Charter added 368,000 total mobile lines, compared to growth of 507,000 during the first quarter of 2025. Spectrum Mobile offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum Mobile is central to Charter’s converged network strategy to provide customers a differentiated connectivity experience with highly competitive, simple data plans and pricing.
Total video customers decreased by 60,000 in the first quarter of 2026, compared to a decline of 181,000 in the first quarter of 2025, with the improvement driven by simplified pricing and packaging and benefits from the inclusion of programmers’ streaming applications in Spectrum’s expanded basic video packages. As of March 31, 2026, Charter had 12.5 million total video customers.
Spectrum TV Select video customers now receive up to approximately $120 per month (soon to be approximately $126 per month) of programmers’ streaming application retail value at no extra cost, including the ad-supported versions of Disney+, Hulu, ESPN Unlimited, HBO Max, Paramount+, Peacock, AMC+, ViX, Tennis Channel and Fox One, with Discovery+ launching soon. In October 2025, Spectrum unveiled the Spectrum App Store, an innovative digital marketplace where Spectrum TV customers can activate, manage and upgrade the streaming apps included with their video plans. The Spectrum App Store also allows Spectrum customers without a traditional TV package to purchase and manage streaming apps à la carte.
During the first quarter of 2026, total wireline voice customers declined by 174,000, compared to a decline of 278,000 in the first quarter of 2025. As of March 31, 2026, Charter had 5.9 million total wireline voice customers.
Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the first quarter of 2026, Charter activated 89,000 subsidized rural passings. Within Charter’s subsidized rural footprint, total customer relationships increased by 41,000 in the first quarter of 2026.
1.
Fastest Speeds claim based on Broadband Download Speed among the top 5 national providers in Opensignal USA: Fixed Broadband Experience Report – May 2025. Based on Opensignal independent analysis of mean download speed.
2.
Fastest Wireless Speeds based on combined mean download speed results for 4G, 5G and Wi-Fi across converged users on the top 5 national providers in November 2025 report.
First Quarter Financial Results
(in millions)
Three Months Ended March 31,
2026
2025
% Change
Revenues:
Internet
$ 5,852
$ 5,930
(1.3) %
Mobile service
1,052
914
15.1 %
Connectivity
6,904
6,844
0.9 %
Video
3,252
3,580
(9.2) %
Voice
338
356
(5.0) %
Residential revenue
10,494
10,780
(2.7) %
Small business
1,090
1,088
0.2 %
Mid-market & large business
749
734
2.1 %
Commercial revenue
1,839
1,822
1.0 %
Advertising sales
358
340
5.3 %
Other
906
793
14.2 %
Total Revenues
$ 13,597
$ 13,735
(1.0) %
Net income attributable to Charter shareholders
$ 1,163
$ 1,217
(4.4) %
Net income attributable to Charter shareholders margin
8.6 %
8.9 %
Adjusted EBITDA1
$ 5,637
$ 5,763
(2.2) %
Adjusted EBITDA margin
41.5 %
42.0 %
Capital expenditures
$ 2,855
$ 2,399
19.0 %
Net cash flows from operating activities
$ 4,304
$ 4,236
1.6 %
Free cash flow1
$ 1,372
$ 1,564
(12.3) %
All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
1.
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
Revenues
First quarter revenue decreased by 1.0% year-over-year to $13.6 billion, driven by lower residential video revenue partly due to costs allocated to programmer streaming applications and netted within video revenue and lower residential Internet revenue, partly offset by an increase in residential mobile service revenue and higher mobile device revenue. Excluding advertising sales revenue and costs allocated to programmer streaming applications and netted within video revenue, first quarter total revenue grew by 0.1% year-over-year.
Residential revenue totaled $10.5 billion in the first quarter, a decrease of 2.7% year-over-year, driven by a year-over-year decline in residential customers of 1.5% and a decrease in monthly residential revenue per residential customer of 1.4%.
First quarter 2026 monthly residential revenue per residential customer totaled $118.44, a decrease of 1.4% compared to the prior year period. The decline was driven by a higher mix of lower priced video packages within Charter’s video customer base, $218 million of costs allocated to programmer streaming applications and netted within video revenue versus $47 million in the prior year period and a decline in video customers during the last year, partly offset by promotional rate step-ups, rate adjustments and the growth of Spectrum Mobile. Excluding costs allocated to programmer streaming applications and netted within video revenue, monthly residential revenue per residential customer increased 0.3% compared to the prior year period.
Internet revenue declined 1.3% year-over-year to $5.9 billion, driven by a decline in Internet customers year-over year, partly offset by a favorable change in bundled revenue allocation year-over-year, promotional rate step-ups and rate adjustments.
First quarter mobile service revenue totaled $1.1 billion, an increase of 15.1% year-over-year, driven by mobile line growth and rate adjustments, partly offset by less favorable bundled revenue allocation year-over-year.
Video revenue totaled $3.3 billion in the first quarter, a decrease of 9.2% compared to the prior year period, driven by a higher mix of lower priced video packages within Charter’s video customer base, $218 million of costs allocated to programmer streaming applications and netted within video revenue versus $47 million in the prior year period, more unfavorable bundled revenue allocation year-over-year and a decline in video customers during the last year, partly offset by promotional rate step-ups and video rate adjustments that pass through programmer rate increases.
Voice revenue decreased by 5.0% year-over-year to $338 million, driven by a decline in wireline voice customers, partly offset by voice rate adjustments.
Commercial revenue increased by 1.0% year-over-year to $1.8 billion, driven by mid-market and large business revenue growth of 2.1% year-over-year and an increase in small business revenue of 0.2%. Mid-market and large business revenue excluding wholesale increased by 2.8% year-over-year, mostly reflecting PSU growth. The year-over-year increase in first quarter 2026 small business revenue was driven by a 0.9% increase year-over-year in monthly small business revenue per small business customer, mostly offset by a decline in small business customer relationships year-over-year.
First quarter advertising sales revenue of $358 million increased by 5.3% compared to the year-ago quarter, primarily driven by higher political revenue. Excluding political revenue in both periods, advertising sales revenue decreased by 3.4% year-over-year driven by lower linear advertising revenue, partly offset by higher streaming advertising revenue.
Other revenue totaled $906 million in the first quarter, an increase of 14.2% compared to the first quarter of 2025, primarily driven by higher mobile device sales.
Operating Costs and Expenses
First quarter total operating costs and expenses declined 0.2% year-over-year to $8.0 billion driven by lower programming costs, mostly offset by higher other costs of revenue.
First quarter programming costs decreased by $214 million, or 9.3% as compared to the first quarter of 2025, reflecting $218 million of costs allocated to programmer streaming applications and netted within video revenue versus $47 million in the prior year period, a higher mix of lower cost packages within Charter’s video customer base and fewer video customers, partly offset by contractual programming rate increases and renewals.
Other costs of revenue increased by $181 million, or 11.4% year-over-year, primarily driven by higher mobile service direct costs, higher mobile device sales and higher advertising sales costs given higher political revenue.
Field and technology operations expenses decreased by $24 million, or 1.8% year-over-year, primarily driven by lower labor expense.
Customer operations expenses decreased by $6 million, or 0.8% year-over-year, primarily due to a decrease in bad debt expense.
Marketing and residential sales expenses decreased by $30 million or 3.2% year-over-year, due to lower marketing and labor expenses.
Transition expenses represent incremental costs incurred to prepare for the integration of the previously announced Cox transaction.
Other expenses increased by $57 million, or 5.3% as compared to the first quarter of 2025, primarily due to one-time benefits of $75 million in the prior year period.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled $1.2 billion in the first quarter of 2026 and 2025, with lower Adjusted EBITDA and higher depreciation and amortization, partly offset by a decrease in other operating expenses due to a non-strategic asset impairment charge in the first quarter of 2025.
Net income per basic common share attributable to Charter shareholders totaled $9.27 in the first quarter of 2026 compared to $8.59 during the same period last year. The increase was primarily the result of a 11.4% decrease in basic weighted average common shares outstanding versus the prior year period, partly offset by the factors described above.
Adjusted EBITDA
First quarter Adjusted EBITDA of $5.6 billion declined by 2.2% year-over-year, reflecting a decline in revenue of 1.0%, partly offset by a decrease in operating costs and expenses of 0.2%. Excluding transition expenses, Adjusted EBITDA declined 1.8% year-over-year.
Capital Expenditures
Capital expenditures totaled $2.9 billion in the first quarter of 2026, an increase of $456 million compared to the first quarter of 2025 given timing of spend, with higher upgrade/rebuild (primarily network evolution) and CPE, partly offset by lower line extension spend.
Charter continues to expect full year 2026 capital expenditures, excluding impacts from the previously announced Cox transaction, to total approximately $11.4 billion. The actual amount of capital expenditures in 2026 will depend on a number of factors including, but not limited to, the pace of Charter’s network evolution and expansion initiatives, supply chain timing and growth rates in Charter’s residential and commercial businesses.
Cash Flow and Free Cash Flow
During the first quarter of 2026, net cash flows from operating activities totaled $4.3 billion, an increase from $4.2 billion in the prior year. The year-over-year increase was primarily due to a less unfavorable change in working capital, partly offset by lower Adjusted EBITDA and higher cash paid for interest.
Free cash flow in the first quarter of 2026 totaled $1.4 billion, a decrease of $192 million compared to the first quarter of 2025. The year-over-year decrease in free cash flow was driven by higher capital expenditures, partly offset by a less unfavorable change in accrued expenses related to capital expenditures and higher net cash flows from operating activities.
Liquidity & Financing
As of March 31, 2026, total principal amount of debt was $94.3 billion and Charter’s credit facilities provided approximately $4.6 billion of additional liquidity in excess of Charter’s $517 million cash position.
In January 2026, CCO Holdings, LLC (“CCO Holdings”) and CCO Holdings Capital Corp. jointly issued $1.75 billion aggregate principal amount of 7.000% senior notes due February 2033 at par and $1.25 billion aggregate principal amount of 7.375% senior notes due February 2036 at par. In February 2026, CCO Holdings and CCO Holdings Capital Corp. redeemed $750 million in aggregate principal amount of the outstanding 5.500% senior notes due 2026 and $2.25 billion in aggregate principal amount of the outstanding 5.125% senior notes due 2027.
Share Repurchases
During the three months ended March 31, 2026, Charter purchased 4.3 million shares of Charter Class A common stock for $963 million.
Webcast
Charter will host a webcast on Friday, April 24, 2026 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.
The webcast can be accessed live via the Company’s investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.
Additional Information Available on Website
The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2026, which will be posted on the “Results & SEC Filings” section of the Company’s investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the “SEC”). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the “Results & SEC Filings” section.
Use of Adjusted EBITDA and Free Cash Flow Information
The Company uses certain measures that are not defined by U.S. generally accepted accounting principles (“GAAP”) to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the Addendum to this release.
Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company’s businesses as well as other non-cash or special items, and is unaffected by the Company’s capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.
Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
Management and Charter’s board of directors use Adjusted EBITDA and free cash flow to assess Charter’s performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company’s credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company’s debt covenants refer to these expenses as management fees, which were $366 million for both the three months ended March 31, 2026 and 2025.
About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company with services available to nearly 59 million homes and small to large businesses across 41 states through its Spectrum brand. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.
More information about Charter can be found at corporate.charter.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under “Risk Factors” from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as “believe,” “future,” “expect,” “anticipate,” “should,” “planned,” “will,” “may,” “intend,” “estimated,” “aim,” “on track,” “target,” “opportunity,” “tentative,” “positioning,” “designed,” “create,” “predict,” “project,” “initiatives,” “seek,” “would,” “could,” “continue,” “ongoing,” “upside,” “increases,” “grow,” “focused on” and “potential,” among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:
our ability to sustain and grow revenues and cash flow from operations by offering Internet, mobile, video, voice, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures;the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite (“DBS”) operators, wireless and satellite broadband and telephone providers, digital subscriber line (“DSL”) providers, fiber to the home providers and providers of video content over broadband Internet connections;general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;our ability to develop and deploy new products and technologies including consumer services and service platforms;any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements);the ability to hire and retain key personnel;the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets;our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions;our ability to satisfy the conditions to consummate the Liberty Broadband Combination and/or the Cox Transactions and/or to consummate the Liberty Broadband Combination and/or the Cox Transactions in a timely manner or at all;the risks related to us being restricted in the operation of our business while the Liberty Broadband Merger Agreement and the Cox Communications Transaction Agreement are in effect;other risks related to the Liberty Broadband Combination as described in the definitive joint proxy statement/prospectus with respect to the Liberty Broadband Combination, filed by Charter on January 22, 2025, including the sections entitled “Risk Factors” and “Where You Can Find More Information” included therein; andother risks related to the Cox Transactions as described in the definitive proxy statement with respect to the Cox Transactions, filed by Charter on July 2, 2025, including the sections entitled “Risk Factors” and “Where You Can Find More Information” included therein.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(dollars in millions)
Three Months Ended
March 31,
Last Twelve Months Ended
March 31,
2026
2025
2026
2025
Net income attributable to Charter shareholders
$ 1,163
$ 1,217
$ 4,933
$ 5,194
Plus: Net income attributable to noncontrolling interest
200
192
787
788
Interest expense, net
1,256
1,241
5,057
5,154
Income tax expense
465
445
1,712
1,648
Depreciation and amortization
2,211
2,181
8,741
8,664
Stock compensation expense
203
222
654
659
Other, net
139
265
698
728
Adjusted EBITDA (a)
$ 5,637
$ 5,763
$ 22,582
$ 22,835
Net cash flows from operating activities
$ 4,304
$ 4,236
$ 16,145
$ 15,454
Less: Purchases of property, plant and equipment
(2,855)
(2,399)
(12,115)
(10,877)
Change in accrued expenses related to capital expenditures
(77)
(273)
782
886
Free cash flow (a)
$ 1,372
$ 1,564
$ 4,812
$ 5,463
The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.
UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA
(dollars in millions)
Three Months Ended March 31,
2026
2025
% Change
REVENUES:
Internet
$ 5,852
$ 5,930
(1.3) %
Mobile service
1,052
914
15.1 %
Connectivity
6,904
6,844
0.9 %
Video
3,252
3,580
(9.2) %
Voice
338
356
(5.0) %
Residential revenue
10,494
10,780
(2.7) %
Small business
1,090
1,088
0.2 %
Mid-market & large business
749
734
2.1 %
Commercial revenue
1,839
1,822
1.0 %
Advertising sales
358
340
5.3 %
Other
906
793
14.2 %
Total Revenues
13,597
13,735
(1.0) %
COSTS AND EXPENSES:
Programming
2,088
2,302
(9.3) %
Other costs of revenue
1,765
1,584
11.4 %
Field and technology operations
1,258
1,282
(1.8) %
Customer operations
766
772
(0.8) %
Marketing and residential sales
919
949
(3.2) %
Transition expenses
24
—
n/a
Other expense (b)
1,140
1,083
5.3 %
Total operating costs and expenses (b)
7,960
7,972
(0.2) %
Adjusted EBITDA (a)
$ 5,637
$ 5,763
(2.2) %
All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 7.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions, except per share data)
Three Months Ended March 31,
2026
2025
REVENUES
$ 13,597
$ 13,735
COSTS AND EXPENSES:
Operating costs and expenses (exclusive of items shown separately below)
8,163
8,194
Depreciation and amortization
2,211
2,181
Other operating expenses, net
15
123
10,389
10,498
Income from operations
3,208
3,237
OTHER INCOME (EXPENSES):
Interest expense, net
(1,256)
(1,241)
Other expenses, net
(124)
(142)
(1,380)
(1,383)
Income before income taxes
1,828
1,854
Income tax expense
(465)
(445)
Consolidated net income
1,363
1,409
Less: Net income attributable to noncontrolling interests
(200)
(192)
Net income attributable to Charter shareholders
$ 1,163
$ 1,217
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS:
Basic
$ 9.27
$ 8.59
Diluted
$ 9.17
$ 8.42
Weighted average common shares outstanding, basic
125,488,486
141,591,396
Weighted average common shares outstanding, diluted
126,849,271
144,574,684
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
March 31,
December 31
2026
2025
ASSETS
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$ 517
$ 477
Accounts receivable, net
3,510
3,680
Prepaid expenses and other current assets
933
987
Total current assets
4,960
5,144
INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net
47,198
46,444
Customer relationships, net
324
440
Franchises
67,471
67,471
Goodwill
29,710
29,710
Total investment in cable properties, net
144,703
144,065
OTHER NONCURRENT ASSETS
4,981
5,004
Total assets
$ 154,644
$ 154,213
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable, accrued and other current liabilities
$ 12,375
$ 12,556
Current portion of long-term debt
—
750
Total current liabilities
12,375
13,306
LONG-TERM DEBT
94,414
94,006
EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY
1,596
1,447
DEFERRED INCOME TAXES
20,049
19,841
OTHER LONG-TERM LIABILITIES
5,140
5,094
SHAREHOLDERS’ EQUITY:
Controlling interest
16,385
16,054
Noncontrolling interests
4,685
4,465
Total shareholders’ equity
21,070
20,519
Total liabilities and shareholders’ equity
$ 154,644
$ 154,213
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
Three Months Ended March 31,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income
$ 1,363
$ 1,409
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization
2,211
2,181
Stock compensation expense
203
222
Noncash interest, net
6
8
Deferred income taxes
214
(27)
Other, net
126
233
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable
5
(48)
Prepaid expenses and other assets
7
(235)
Accounts payable, accrued liabilities and other
169
493
Net cash flows from operating activities
4,304
4,236
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment
(2,855)
(2,399)
Change in accrued expenses related to capital expenditures
(77)
(273)
Other, net
(42)
(132)
Net cash flows from investing activities
(2,974)
(2,804)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt
7,216
1,393
Borrowings of equipment installment plan financing facility
148
121
Repayments of long-term debt
(7,499)
(1,609)
Payments for debt issuance costs
(30)
—
Purchase of treasury stock
(1,026)
(802)
Proceeds from exercise of stock options
2
17
Purchase of noncontrolling interest
—
(20)
Distributions to noncontrolling interest
(2)
(3)
Other, net
(115)
(169)
Net cash flows from financing activities
(1,306)
(1,072)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
24
360
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
598
506
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$ 622
$ 866
CASH PAID FOR INTEREST
$ 1,067
$ 995
As of March 31, 2026, December 31, 2025, March 31, 2025 and December 31, 2024, cash, cash equivalents and restricted cash includes $105 million, $121 million, $70 million and $47 million of restricted cash included in prepaid expenses and other current assets in the consolidated balance sheets, respectively.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED SUMMARY OF OPERATING STATISTICS
(in thousands, except per customer and penetration data)
Approximate as of
March 31,
2026 (c)
December 31,
2025 (c)
March 31,
2025 (c)
Footprint
Estimated Passings (d)
58,661
58,399
57,167
Customer Relationships (e)
Residential
29,452
29,609
29,914
Small Business
2,231
2,237
2,246
Total Customer Relationships
31,683
31,846
32,160
Residential
(157)
(125)
(50)
Small Business
(6)
(2)
(4)
Total Customer Relationships Quarterly Net Additions
(163)
(127)
(54)
Total Customer Relationship Penetration of Estimated Passings (f)
54.0 %
54.5 %
56.3 %
Monthly Residential Revenue per Residential Customer (g)
$ 118.44
$ 117.19
$ 120.07
Monthly Small Business Revenue per Small Business Customer (h)
$ 162.71
$ 159.85
$ 161.31
Residential Customer Relationships Penetration (i)
One Product Penetration
47.7 %
48.0 %
48.9 %
Two Product Penetration
34.8 %
34.5 %
33.4 %
Three or More Product Penetration
17.5 %
17.5 %
17.7 %
Connectivity (j)
Residential
28,446
28,563
28,758
Small Business
2,074
2,077
2,080
Total Connectivity Customers
30,520
30,640
30,838
Residential
(117)
(95)
(5)
Small Business
(3)
—
(2)
Total Connectivity Quarterly Net Additions
(120)
(95)
(7)
Internet
Residential
27,524
27,641
27,979
Small Business
2,036
2,039
2,045
Total Internet Customers
29,560
29,680
30,024
Residential
(117)
(119)
(55)
Small Business
(3)
—
(4)
Total Internet Quarterly Net Additions
(120)
(119)
(59)
Mobile Lines (k)
Residential
11,714
11,370
10,031
Small Business
420
396
334
Total Mobile Lines
12,134
11,766
10,365
Residential
344
406
488
Small Business
24
22
19
Total Mobile Lines Quarterly Net Additions
368
428
507
Video (l)
Residential
12,021
12,072
12,160
Small Business
524
533
551
Total Video Customers
12,545
12,605
12,711
Residential
(51)
49
(167)
Small Business
(9)
(5)
(14)
Total Video Quarterly Net Additions
(60)
44
(181)
Voice
Residential
4,665
4,832
5,372
Small Business
1,207
1,214
1,234
Total Voice Customers
5,872
6,046
6,606
Mid-Market & Large Business (m)
Mid-Market & Large Business Primary Service Units (“PSUs”)
360
357
344
Mid-Market & Large Business Quarterly Net Additions
3
3
4
See footnotes on page 7.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CAPITAL EXPENDITURES
(dollars in millions)
Three Months Ended March 31,
2026
2025
Customer premise equipment (n)
$ 668
$ 473
Scalable infrastructure (o)
310
293
Upgrade/rebuild (p)
675
395
Support capital (q)
390
360
Capital expenditures, excluding line extensions
2,043
1,521
Subsidized rural construction line extensions
426
467
Other line extensions
386
411
Total line extensions (r)
812
878
Total capital expenditures
$ 2,855
$ 2,399
Capital expenditures included in total related to:
Commercial services
$ 286
$ 273
Subsidized rural construction initiative (s)
$ 427
$ 468
Mobile
$ 60
$ 53
See footnotes on page 7.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
FOOTNOTES
(a)
Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net such as special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
(b)
Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.
(c)
We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, at March 31, 2026, December 31, 2025 and March 31, 2025, customers included approximately 87,600, 82,300 and 92,200 customers, respectively, whose accounts were over 60 days past due, approximately 7,800, 9,700 and 10,700 customers, respectively, whose accounts were over 90 days past due and approximately 13,600, 13,600 and 17,000 customers, respectively, whose accounts were over 120 days past due.
(d)
Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and small business and mid-market & large business sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.
(e)
Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, mobile, video and voice services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units (“MDUs”) and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude mid-market & large business customer relationships.
(f)
Penetration represents residential and small business customers as a percentage of estimated passings.
(g)
Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter.
(h)
Monthly small business revenue per small business customer is calculated as total small business quarterly revenue divided by three divided by average small business customer relationships during the respective quarter.
(i)
One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships.
(j)
Connectivity customers represent all customers receiving our Internet and/or mobile connectivity services.
(k)
Mobile lines include phones and tablets which require one of our standard rate plans (e.g., “Unlimited” or “By the Gig”). Mobile lines exclude wearables and other devices that do not require standard phone rate plans.
(l)
Video customers only include customers that purchase Spectrum traditional or streaming linear video packages and exclude customers that only purchase streaming applications.
(m)
Mid-market & large business PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
(n)
Customer premise equipment includes equipment and devices located at the customer’s premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs.
(o)
Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment).
(p)
Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative.
(q)
Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment).
(r)
Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
(s)
The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments, excluding customer premise equipment and installation.
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SOURCE Charter Communications, Inc.
Technology
KVB Futures Marks Its First Anniversary with Heartfelt CSR Initiative, Sharing Joy This Easter Season
Published
5 hours agoon
April 24, 2026By
JAKARTA, Indonesia, April 24, 2026 /PRNewswire/ — Marking its first anniversary, KVB Futures celebrates a year of growth and milestones by hosting its inaugural Corporate Social Responsibility (CSR) initiative under the #BetterTogether vision at Yayasan Pondok Kasih Mandiri, Jakarta. Held in conjunction with Easter, the initiative reflects the company’s commitment to creating meaningful connections with the community through activities such as Easter egg colouring, a communal meal, and a donation handover to the foundation’s children.
The event was attended by President Director Tonny Fong, alongside the Compliance Director and KVB staff, highlighting KVB Futures’ commitment at the leadership level to actively contribute to social impact initiatives and community development.
“At KVB Futures, we believe that meaningful impact begins with care. This initiative reflects our responsibility to support and give back to the community, and we hope to continue creating a positive and lasting difference through our actions.”
Tonny Fong, President Director of KVB Futures.
In celebration of this first anniversary milestone, KVB Futures also introduces its Loyalty Program as a form of appreciation for its loyal clients. The program is designed to reward clients for their continuous trading activities, where each transaction contributes to earning exclusive rewards. Through this initiative, clients are encouraged to grow together with KVB Futures while enjoying additional benefits beyond the trading experience. Rewards offered under the program range from international travel, motorcycles, gold, iPhones, to vouchers reflecting the company’s commitment to delivering tangible value to its clients.
Beyond business growth, this initiative marks the beginning of KVB Futures’ long-term commitment to community engagement and sustainable impact. The company aims to continue developing meaningful programs that not only strengthen relationships with the community but also reinforce its position as a trusted, responsible, and people-first brokerage in Indonesia.
About KVB Futures
PT KVB Futures is a fully regulated brokerage under BAPPEBTI, operating in accordance with applicable regulations of OJK and Bank Indonesia (BI), and is ISO-certified to ensure high standards of security and operational excellence.
KVB Futures offers multi-asset trading services, including foreign exchange, gold, silver, oil, global stock indices, and US stock CFDs. With its KVB app at the core, KVB Futures combines innovative technology and a client-first approach to deliver a seamless, reliable, and competitive trading experience in Indonesia.
KVB Futures Contact
+62 851-1701-0756 | brand@kvb.co.id
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/kvb-futures-marks-its-first-anniversary-with-heartfelt-csr-initiative-sharing-joy-this-easter-season-302752543.html
SOURCE KVB Futures
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